Slide 1: Q3 2022 Earnings Presentation
Q3 2022 EARNINGS PRESENTATION November 8, 2022
Slide 2: Forward-Looking Statements; Non-GAAP Financial Information
FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, our operations and financial performance. For
Slide 3: Company Overview & Q3 2022 Highlights
COMPANY OVERVIEW & Q3 2022 HIGHLIGHTS Scott Staples Chief Executive Officer
Slide 4: Company Snapshot
COMPANY OUR CUSTOMERS 1, 2 SNAPSHOT 33K+ ~93M 50%+ ~96% 12 Year Customers Screens of Fortune 100 Gross Retention Average LEADING GLOBAL PROVIDER OF and 33%+ Fortune 500 Rate Tenure HR TECHNOLOGY SOLUTIONS for Screening, Verifications, Safety, and Compliance OUR TECHNOLOGY 1 OUR MARKET 1 850+ 2,875+
Slide 5: Q3 2022 Notable Business Achievements
Q3 2022 NOTABLE BUSINESS ACHIEVEMENTS Macro jobs trends and structural tailwinds, including high velocity hiring, frequent job 1 switching, and high churn, support long-term revenue growth outlook Significant customer wins during the quarter, including 11 new logo enterprise customers 2 in Q3 and 29
Slide 6: Q3 2022 Financial Highlights
Q3 2022 FINANCIAL HIGHLIGHTS Revenue growth of 6.8% driven by continued strength in Americas segment, partially offset by foreign currency headwinds and macro-related softness in International 1 segment; constant currency revenue1 growth was 8.6%; cycling over 41% revenue growth in Q3 2021 Adjusted
Slide 7: Financial Results & Outlook
FINANCIAL RESULTS & OUTLOOK David Gamsey EVP, Chief Financial Officer
Slide 8: Q3 2022 Financial Results
Q3 2022 FINANCIAL RESULTS ($ in millions, except per share data) Revenues Adjusted EBITDA and Margin 1 Adjusted Diluted EPS 1 $206.0 $0.28 - 7.1% $0.26 + 6.8% $63.9 + 0.4% $64.2 $192.9 40 % 38 % + 8.6% 36 % constant 34 % currency1 32 % 33.2% 30 % 31.2% 28 % 26 % 24 % 22 % 20 % Q3 2021 Q3 2022 Q3 202
Slide 9: Consistent Track Record of Revenue Growth
CONSISTENT TRACK RECORD OF REVENUE GROWTH Revenues 1 ($ in millions) 3-year LTM Revenues CAGR2 20.0% total; 18.0% organic $212.5 $206.0 COVID-19 $201.6 $192.9 $189.9 $174.8 $156.5 $136.8 $132.1 $123.8 $126.7 $110.8 $105.0 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q
Slide 10: Consistent Track Record of Adjusted EBITDA Growth
CONSISTENT TRACK RECORD OF ADJUSTED EBITDA GROWTH Adjusted EBITDA and Margin 1,2 ($ in millions) 3-year LTM AEBITDA CAGR3 27.9% $69.4 COVID-19 $63.9 $64.2 $60.8 $56.3 $53.6 $43.3 $44.6 $36.6 $33.5 $31.8 $31.7 $27.2 32.2% 33.2% 32.7% 30.1% 31.6% 30.2% 31.2% 27.1% 28.5% 27.7% 28.2% 25.1% 24.6% Q3 '19
Slide 11: Cash Flow, Leverage & Capital Allocation
CASH FLOW, LEVERAGE & CAPITAL ALLOCATION Cash Flow From Net Leverage Capital Allocation Operating Activities at September 30, 2022 Priorities ($ in millions) ($ in millions) Total YTD Pursue strategic M&A opportunities $142.8 • Vertical capabilities + 70.3% Debt $565 • International expansion Total
Slide 12: Full Year 2022 Guidance
FULL YEAR 2022 GUIDANCE Equates to Constant Currency Revenues of $823 to $831, or 16% to 17% Y/Y growth Prior Guidance Revised Guidance FY 2021 Actuals Y/Y % Growth ($ in millions) As of 8/4/22 As of 11/8/22 Revenues $712 $823 to $835 $813 to $820 +14% to 15% Adjusted EBITDA $226 $254 to $259 $247 t
Slide 13: Closing Remarks
CLOSING REMARKS Scott Staples Chief Executive Officer
Slide 14: Investment Highlights
Q4 2021 Highlights INVESTMENT HIGHLIGHTS 1 A global leader in a large, fragmented, and growing market Diversified enterprise-focused customer base across attractive industry 2 verticals due to verticalized go-to-market strategy Digital technology, automation, artificial intelligence, and machine 3 l
Slide 15: Appendix
APPENDIX Supplemental Materials and Reconciliations to GAAP Measures
Slide 16: Proven Formula for Above-Market Long-Term Growth
PROVEN FORMULA FOR ABOVE-MARKET LONG-TERM GROWTH Existing Customers New Customers • Significant whitespace • Fragmented industry • New product launches • $13B Total Addressable Market • Increased package • Leading value proposition density • Track record of share gain • New geographies • New divisio
Slide 17: Long-Term Organic Growth Targets
LONG-TERM ORGANIC GROWTH TARGETS 1 Long-Term Organic Targets Key Drivers • Proven growth formula • Existing customer base growth • Upsell / cross-sell to existing customers • New customer wins Revenues Growth 8 – 10% • Net of existing customer attrition • Performance track record • Identified market
Slide 18: Adjusted EBITDA
ADJUSTED EBITDA (a) Represents charges incurred related to acquisitions and similar transactions, primarily consisting of change in control-related costs, professional service fees, and other third-party costs. Additionally includes incremental professional service fees incurred related to the initi
Slide 19: Adjusted EBITDA (Q1 2020 Pro Forma for Silver Lake Transaction)
ADJUSTED EBITDA (Q1 2020 Pro Forma for Silver Lake Transaction) Pro Forma Predecessor Successor Adjustments for the Period Ended Period Ended Three Pro Forma Three Jan 31, 2020 Mar 31, 2020 Months Ended Months Ended (in thousands) Q1 Q1 Mar 31, 2020 Mar 31, 2020 Net (loss) income $ (36,530) $ (21,81
Slide 20: Constant Currency Revenues; Constant Currency Adjusted EBITDA
CONSTANT CURRENCY REVENUES CONSTANT CURRENCY ADJUSTED EBITDA (a) Constant currency revenue is calculated by translating current period amounts using prior-year period exchange rates. (a) Constant currency Adjusted EBITDA is calculated by translating current period amounts using prior-year period exc
Slide 21: Adjusted Net Income; Adjusted Diluted EPS
ADJUSTED NET INCOME ADJUSTED DILUTED EPS (a) Represents the loss on extinguishment of debt and non-cash interest expense related to the amortization of debt issuance costs for the 2021 February refinancing and repayment of the Company’s Successor First Lien Credit Facility and Successor Second Lien
Slide 22: Committed to Supporting ESG Programs
COMMITTED TO SUPPORTING ESG PROGRAMS Sustainable Mindset • Conducted 3rd party materiality assessment Climate Risk Employee Attraction Good Expanding • Consciously choosing eco-friendly facilities and optimizing facilities footprint; using state of the art datacenters employing renewable & Adaptatio